Pension Reserve - This portion of your allowance is taxable. It is derived from contributions made by the County or district.

Cost-of-Living Adjustment - Represents the accumulated cost-of-living (COLA) increase granted by the Board of Retirement each April 1. Once granted, the dollar amount is permanent and cumulative. Contributory plan members (Plans A, B, C, or D) and Plan E members who earned service credit on and after June 4, 2002 are eligible to receive the April 1 COLA. Click here to read about the current year's COLA. (2-24-09)

Supplemental Targeted Adjustment for Retirees (STAR COLA) - Represents the cost-of-living benefit granted by the Board of Retirement on January 1 for those members who have lost more than 20 percent of the value of their retirement allowance to inflation. Only contributory plan members are eligible for STAR COLA.

2. Q: Is LACERA still offering Savings Bonds purchases?
A: No. The United States Department of the Treasury has converted its Savings Bond program to a paperless web-based arrangement, where Bond purchases may be made by individuals over the internet, rather than by employer-administered payroll deduction. To purchase Savings Bonds, visit the U.S. Treasury web site. (2-3-06)

3. Q: What is STAR COLA, and how is the benefit determined?
A: The Supplemental Targeted Adjustment for Retirees (STAR) or STAR COLA Program is designed to ease the effects of inflation for a retiree whose retirement allowance has lost more than 20 percent of its purchasing power since retirement. Eligible retirees are determined by plan and retirement date.

Each year, the Board of Retirement determines whether a STAR benefit is due to any LACERA retirees based on inflation experienced over their retirement years, offset by April 1 COLAs the retirees have already received.

Inflation is measured by increases in the Los Angeles-Riverside-Orange County, CA Consumer Price Index (CPI). The Board also determines whether the benefit should be an ad-hoc benefit (paid for one year only) or a permanent benefit (added to the base retirement allowance for the member’s life). (7-18-06)

4. Q: I am the survivor of a Plan D member. Are the benefits I’m receiving affected by the amount my deceased spouse (or domestic partner) already received?
A: Survivor benefits are determined by the retirement option the member chose at retirement. If a Plan D member selects Option 1, upon the member’s death, his/her named beneficiary will receive a lump-sum payment equal to the remaining balance of the member’s retirement contributions, if any. The amount paid to the beneficiary under this option is affected by the amount the member received in retirement.

If a plan D member selects the Unmodified Option or the Unmodified+Plus Option, the eligible surviving spouse or domestic partner will receive a monthly allowance for the rest of his/her life. This benefit amount is not affected by the amount the member received in retirement. (2-3-06)

5. Q: How is the survivor allowance calculated under the Unmodified Retirement Option?
A: It varies according to the Plan. Upon the death of a retiree who elected the Unmodified Retirement Option in contributory Plan A, B, C, or D, the eligible survivor receives a continuing monthly allowance equal to 65 percent of the allowance the retiree received in his or her lifetime. Under non-contributory Plan E, the eligible survivor receives a continuing monthly allowance in an amount equal to 55 percent of the allowance the retiree received in his or her lifetime.

For members who retired prior to June 4, 2002, the survivor percentage is 60 percent in contributory Plans and 50 percent under Plan E. (2-24-10)

6. Q: How has LACERA changed its tax reporting on Service-Connected Disability (SCD) Retirement allowances?
A: In response to IRS requirements, LACERA now (2006) determines the taxable amount on SCD allowances, and identifies it accordingly in the Total Taxable YTD category on your check stub or automatic deposit receipt (ADR). Previously, LACERA reported SCD income as “Taxable Amount Not Determined.”) These changes will also be reflected on the annual Form 1099R that LACERA is required to send each retiree and file with the IRS. For more information, call 1-800-786-6464 and speak with a LACERA Retirement Benefits Specialist. (6-27-06)

7. Q: How can I sign up for Direct Deposit?
A: We make it easy. Call 1-800-786-6464 and one of our Retirement Benefits Specialists will help you enroll in Direct Deposit. (Tip: Have one of your checks or bank information on hand before calling.)

If you'd rather sign up for Direct Deposit by mail, you can find the brochure and application on lacera.com's Brochures & Forms page. (2-24-10)

8. Q: What is COLA?
A: “COLA” is a cost-of-living adjustment for your retirement allowance. This benefit aims to reduce the impact of inflation for retirees. Adjustments are based on changes in the Consumer Price Index (CPI) and are approved by the Board of Retirement each year. (8-1-06)

9. Q: I'm in Plan E. Do I get a cost-of-living adjustment?
A: As a Plan E member, you are eligible for Automatic COLA on the portion of your retirement allowance based on service credit earned on and after June 4, 2002. This annual adjustment can result in an increase up to a maximum of 2%. The actual percentage may vary each year based on inflation rates.
For more information see our COLA web page. (2-24-09)

10. Q: I'm interested in the special LACERA hotel rates. How can I prove I’m a retired County employee?
A: You can present the pay stub from your LACERA retirement allowance check to verify you are a retired County employee. LACERA doesn’t issue membership cards; membership numbers and other personal information are kept private. Click here for additional information on hotels discounts.

11. Q: I'm retired. What are my restrictions if I decide to work for the County part time?
A: To remain eligible to receive your retirement allowances, you would be restricted to working 120 days (960 hours each fiscal year, July 1 - June 30).
Working after Retirement (3-27-07)

12. Q: I am retired, but wish to return to full-time County service. What should I do?
A: A retired member may return to active membership in LACERA, if the member:

• Makes an application to the Board of Retirement for reinstatement;
• Is determined by the Board of Retirement not to be incapacitated for the duties assigned to the member, based on medical examination;*
• Is eligible for membership (i.e., a permanent employee working three-quarter time or more); and
• Is hired by the County**

*Effective January 2, 2009, pre-placement medical examinations are waived for employees who are rehired within three months of their date of termination. Pre-placement medical examinations are waived for some employees with rehire dates within six months of their date of termination, provided the physical demands of their County Class Specifications are rated Physical Class 2. Certain exceptions apply; contact your Department for details.

**A Department must receive approval from the Board of Supervisors to permanently rehire a retiree. Members who received an Early Separation Program (ESP) payoff are not eligible for rehire. (7-21-09)

13. Q: Where can I find a Payday Planning Calendar for retired members?
A: A Payday Calendar displaying mailing dates for LACERA retirement checks, direct deposit dates, and all LACERA holidays can be accessed in our Retired Member's section of our web site. Payday Calendar (1-3-07)

14. Q: I'm retired and just got divorced. Will this affect LACERA sending my monthly retirement allowance?
A: If you divorce after retirement, LACERA will continue paying your full monthly allowance until we receive a conformed copy (with the court clerk's filing date stamp and the judge's signature) of the final Judgment of Dissolution directing a split of your allowance with your ex-spouse.

15. Q: I'm retired and just got divorced. Will LACERA automatically remove my ex-spouse from my Retiree Health Care coverage?
A: No. You must notify LACERA to remove your ex-spouse from your Retiree Health Care coverage. However, in some cases, the court will order continuation of an ex-spouse's health insurance and will hold you financially responsible for that coverage. (2-5-07)

16. Q: When do we find out about the cost-of-living adjustment (COLA)?
A: Each year, before April, the Board of Retirement evaluates the inflation experienced during the past year and determines the percentage increase, if any, for LACERA allowances paid to retirees, survivors, and beneficiaries. This adjustment becomes effective each April 1st, so the increase will be reflected in your April 30th check. Look for information about COLA in the Retired Member section. (3-29-07)

17. Q: I’m a retiree, and I'm getting divorced soon. What will happen to my monthly check?
A: If the Court determines your LACERA benefits are community property, a court order will direct the division of your monthly allowance. Notify LACERA promptly of the divorce so we can update your records. When the dissolution is final, LACERA will require a conformed copy (with the court clerk’s filing date stamp and the judge’s signature) of all the pages of your Judgment of Dissolution, a copy of the Notice of Entry of Final Judgment, and if applicable, a copy of the Domestic Relations Order (DRO). Our Legal Division will review the documents to determine if an additional order is needed.

LACERA will continue to pay your monthly allowance until all the final documents are received and reviewed. At that time, any court-ordered division will be applied to your allowance. In addition, you must contact LACERA in writing to remove your former spouse/partner from your LACERA-administered retiree health care coverage within 30 days after the date of dissolution. (7-21-09)

18. Q: How can I change the tax withholding for my check?
A: If you are a retiree, survivor, or beneficiary who receives a monthly allowance from LACERA, you may change your federal tax withholding election at any time. Print Form W-4P/DE-4P from the Brochures & Forms page, complete and sign it, and mail it to LACERA. Your new tax withholding will be reflected on the check that is issued at least 30 days after we receive your form. (4-6-07)

19. Q: I am the spouse of an LA County retiree. Am I eligible for part of his benefit if he dies before I do?
A: If you were married/registered partners at least one year before the member retired (or, in the case of a service-connected disability retirement, any time prior to the retirement date), you are an eligible surviving spouse/partner and you may be eligible for a benefit upon the member’s death. The benefit depends upon the member’s plan, retirement option, and other factors. (4-6-07)

20. Q: What if I marry after retirement? Will my new spouse be eligible for any LACERA benefits?
A: If you marry or enter into a registered domestic partnership after you retire, your new spouse/partner will be an eligible dependent under the LACERA-administered retiree health care program. You must add your new dependent within 30 days after the date of marriage/registration. Generally, a spouse/partner added after retirement is not eligible for a continuing monthly allowance after the member’s death. Also, you may name him or her as your beneficiary for the $5,000 death benefit. (4-6-07)

21. Q: I'm a new retiree. What information resources do I have?
A: Our Retired Member section, under Benefits, offers retirement information. You will receive our quarterly newsletter, Spotlight on Retirement, which includes information on legislation, the LACERA-administered health care program, and more. Once a year, you’ll receive a package with updated information on the medical and dental/vision plans. (4-6-07)

22. Q: When will I get my Form 1099-R?
A: LACERA mails a Form 1099-R at the end of January to each retiree, survivor, and beneficiary who received a benefit from LACERA in the previous year. This form, which indicates the total income you received from LACERA, should be used to file your income tax return. (4-6-07)

23. Q: How is the Cost-of-Living Adjustment (COLA) applied each year to my retirement allowance?
A: California Government Code requires that each year, prior to April 1, the Board of Retirement (BOR) will determine whether there has been an increase or decrease in the cost of living, as reflected in the Bureau of Labor Statistics Consumer Price Index (CPI) for All Urban Consumers for the Los Angeles-Anaheim-Riverside area. If the BOR approves a COLA, the adjustment is reflected in the April allowances of retirees and eligible survivors.

The provisions of COLA vary according to your LACERA Plan. For additional information, visit the Plan Book section on lacera.com. (2-24-10)

24. Q: Will the COLA be applied to my deferred retirement?
A: No. The annual COLA benefit will be applied to your retirement benefit after you have retired. (3-3-08)

25. Q: I'm a retired member. When I die, will my retirement benefits stop or will they go to my survivor?
A: Survivor benefits vary according to the Retirement Option you elected. Under the Unmodified Option, Unmodified+Plus Option, and Options 2, 3, and 4, upon your death, your eligible survivor is entitled to a continuing monthly allowance. The allowance is based on a percentage of the monthly allowance you received during your lifetime; that percentage is determined by the option you elect at retirement. Under Option 1, your named beneficiary receives a lump-sum payment (NOTE: Option 1 is not available under Plan E). See Service Retirement for more information.

When a member in Plan A, B, C, D, or E dies after retirement, the surviving spouse, or the named beneficiary or estate, is entitled to receive a one-time $5,000 death/burial benefit from LACERA. (5-27-08)

26. Q: As a retiree, I take extended vacations. Should I make arrangements to ensure I continue receiving my retirement checks while I'm away?
A: Yes, good idea. It is important to notify us when you have an extended travel schedule, when you will be spending time at a second home or vacation home, or when you have other temporary address changes. If, for some reason, your retirement check is returned to LACERA while you are away, we will stop payment on the check for your protection. (6-12-08) 

27. Q: My LACERA "New Retiree Package" included information on Employee Unions/Senior Associations. Is LACERA affiliated with these organizations?
A: These organizations are not affiliated with LACERA. As a courtesy, LACERA occasionally enables them to send you material. We do not provide your address to these organizations. LACERA does not endorse these groups or the services they offer. You may wish to review their information and consider whether their services are of interest to you. When you receive the mailings, call the organizations directly if you have any questions about their services. Note: LACERA is unable to answer questions regarding these organizations or their programs. (6-05-08)

28. Q: I am living outside California in another country, and I cannot use the toll-free number for LACERA. Is there another phone number I can call?
A: You can call LACERA at (626) 564-6132. Unfortunately, it will not be a free phone call, but this phone number will take you directly into the Call Center at LACERA. (6-09-08)

29. Q: If I remarry after retirement, will my new spouse be eligible to receive a continuing allowance if I predecease him/her?
A: No. A surviving spouse or a registered domestic partner is eligible to receive a continuing monthly survivor allowance if he or she married the member or registered as a domestic partner at least one year prior to the member's date of retirement. You can name your new spouse/partner as your beneficiary for the $5,000 death/burial benefit. (6-10-08)

30. Q: I'm retired and thinking of relocating to another state. How would this affect my retirement benefits?
A: If you move from California to another state, LACERA will stop the withholdings for California State taxes on your monthly retirement checks. State tax requirements on retirement income differ from state to state. You should consult with your own tax advisor and contact the appropriate state tax authority for its rulings. Be sure to contact LACERA and notify us of your address change to ensure you continue to receive your retirement checks once you relocate. You can make changes to your address by calling LACERA at 1-800-786-6464 or (626) 564-6132.

Health care plans will probably change if you move out of state, or the country. Contact the insurance company for specific information about coverage differences. Phone numbers for your insurance companies can be found at Contact Health Care Insurance Companies. Notify LACERA before you cancel your current health plan coverage. (6-10-08)

31. Q: I have direct deposit for my monthly retirement checks. I did not receive my automatic deposit receipt (ADR) for my last check. What should I do?
A: Contact LACERA at 1-800-786-6464 and let us know you did not receive your ADR in the mail. We will send you a duplicate.

If you get a monthly paper check and you do not receive it by the fifth working day after the date payable, you may request a duplicate check. The duplicate check will be mailed to you within three to five days of your request. If you do eventually receive the original check, do not cash or deposit it. Write "VOID" on it and return it to LACERA. (6-10-08)

32. Q: I found an uncashed check payable to me from LACERA, and it is six months old. How long is the check valid for cashing?
A: LACERA will stop payment on checks one year after they have been issued. After one year, you must contact LACERA at 1-800-786-6464 regarding reissuance of the check. (6-10-08)

33. Q: Is my monthly allowance affected by the number of days in the month?
A: No. Your allowance is based on a fixed monthly amount. The amount is the same regardless of how many days there are in the month.

If your effective retirement date falls after the first of the month, for example on May 15, your first retirement allowance check will be prorated based on a daily amount. Thereafter, your allowance will be a fixed monthly amount. (2-24-10)